Every December businesses and general members of the public wait with bated to breath to see what the outcome of the Autumn Statement will be. An element that is regularly addressed in the Autumn Statement each year is stamp duty and the 2014 Autumn Statement proved to be no different. However, understanding what exactly is discussed during the Autumn Statement isn’t always easy, this guide takes a look at the frequently ask questions and attempts to answer them.
What exactly is stamp duty?
Stamp duty isn’t all that difficult to define. It is the charge that arises on the transfer of documents when a property is purchased in the United Kingdom, and actually qualifies as the oldest UK tax. It was first documented for use first back in 1694 and has been a part of the UK property purchasing process ever since.
Who will benefit the most from the new regulations?
When George Osborne stepped forward to deliver the Autumn Statement, it was clear that homebuyers were at the forefront of his mind. He announced that stamp duty would be cut for 98% of homebuyers who are set to pay it. These are big numbers that are designed to kick start home buying in the United Kingdom.
What is the downside of the new regulations?
If you are going to buy a property that costs £937,000 or more, then the Autumn Statement provided less than positive reading. As the new outlines showed that an increased stamp duty would be charged on such properties.
How do I work out which stamp duty band I fall under?
The stamp duty bands announced during the 2014 Autumn Statement are as follows:
Should you be struggling with your stamp duty calculations then HMRC has provided a free online calculator which can be found on their website.
Why was a new stamp duty set up deemed necessary?
The “slab system” had been critically panned for its questionable focus. It didn’t start issuing charges until £125,000 and had a tendency to hurt those who were new to the property ladder the most out of everyone. It was considered a factor in the stalling property market and was something that needed to be addressed sooner rather than later.
Does stamp duty apply to me?
If you live the UK then there is no way to work around stamp duty. If you want to purchase a property that is valued over a certain amount then you will have to pay it. However, from April 2015 Scottish residents will be subjected to their own stamp duty regulations.
How can I find out more information about stamp duty?
Stamp duty is a government issued tax and directive, hence its inclusion in the Autumn Statement. If you feel that you need more information about stamp duty then log on to either the HMRC official website or GOV.UK.
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Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Having a keen interest in investments.